The UK Government has issued 27 new oil and gas licences in the North Sea amid reports Rishi Sunak is set to announce legislation to usher in a new annual system for awarding new fossil fuel contracts.

The new licences have been issued for quicker-to-production areas and have been prioritised because the UK Government believes it will boost energy security.

The 27 new licences in the central and northern North Sea have been earmarked to let operators press ahead with their plans to explore and develop oil and gas resources.

In recent years, the average time from licence award to production is around five years.

But climate campaigners warned the Prime Minister has moved to “pander to corporate interests”, adding that the move will “make no difference to bills, do nothing for energy security, and produce yet more profits for dizzyingly wealthy companies”.

Humza Yousaf criticised the decision to approve the controversial Rosebank oil field off the coast of Shetland and warned against unlimited extraction of fossil fuels.

It comes amid reports the UK Government will use next week’s King’s speech to push forward the mechanism for awarding new oil and gas licences.

The Observer reported that ministers could announce legislation to introduce a new annual system for awarding oil and gas licences, despite fears over net zero commitments.

In addition to the 27 licences issued today, six more blocks, which were also ready to be offered, have been merged into five existing licences.

Today’s announcement is part of the North Sea Transition Authority’s wider efforts to support the UK’s energy security options, which includes the licensing of offshore gas stores and engagement with industry on opportunities to reopen closed wells.

Stuart Payne, NSTA chief executive, said: “Ensuring that the UK has broad options for energy security is at the heart of our work and these licences were awarded in the expectation that the licensees will get down to work immediately.

“The NSTA will work with the licensees to make sure that where production can be achieved it happens as quickly as possible.”

UK Energy Security Secretary, Claire Coutinho, said: “As recognised by the independent Climate Change Committee - we’ll continue to need oil and gas over the coming decades as we deliver net zero “It’s common sense to reduce our reliance on foreign imports and use our own supply – it’s better for our economy, the environment and our energy security.

“These new licences are a welcome boost for the UK industry, which already supports around 200,000 jobs and contributes £16 billion to the economy each year – while advancing our transition to low-carbon technologies, on which our future prosperity depends.”

But environmentalists have warned against opening up the North Sea to fossil fuels production.

Philip Evans, climate campaigner for Greenpeace UK, said: “UK voters want warmer homes, cheaper energy bills and a government that’s not afraid to take on the climate crisis.

“Instead they’re being ignored so Rishi Sunak can pander to corporate interests, with licences for fossil fuels that’ll make no difference to bills, do nothing for energy security, and produce yet more profits for dizzyingly wealthy companies like Shell. They profit while we get colder and poorer, and the UK turns into a nation that’s fuelling the climate crisis rather than helping to fix it.

“Greenpeace plans to fight these licences in the courtroom, and we’re mobilising voters to prioritise climate at the next election, because frankly we’re all sick of these backward facing policies.”

Offshore Energies UK chief executive, David Whitehouse, claimed the announcement was a “boost for UK energy security” and for the industry workforce.

He added: “We all recognise that our energy system must change, and our industry includes companies that are expanding into renewables while using their expertise to pioneer ever cleaner energy production.

“The reality of the energy transition is that we need both oil and gas and renewables in an integrated system to protect the UK’s energy needs over the coming years.

“Last year filling the fuel import gap cost the UK £117bn. That’s a lot of money spent supporting the economic growth of other producing countries. With careful management and collaboration, the UK can become the gold standard of energy transitions. We can drive economic growth, reach our climate goals and avoid a future where we increasingly import our energy and export our jobs.

“Energy security is national security. We need pragmatic policy and political consensus if we are to realise £200billon potential company investment in UK wind, hydrogen and carbon capture, and oil and gas production over this decade, with all the jobs and work for our supply chains this will bring.”